West Perth-based mineral explorer Precious Metals Australia Ltd has raised $2.7 million through a share purchase plan, closing oversubscribed by 80 per cent and bringing its total capital raised over summer to $51.2 million.
West Perth-based mineral explorer Precious Metals Australia Ltd has raised $2.7 million through a share purchase plan, closing oversubscribed by 80 per cent and bringing its total capital raised over summer to $51.2 million.
Funds raised through the SPP, which was underwritten by Patersons Securities Ltd, will enable PMA to continue important site pre-development works at the $200 million Windimurra Vanadium Project while the remainder of the project finance package is being completed.
The raising comes after Noble Group acquired a 10% holding in the Project for $13.5 million in October 2006.
The full text of a company announcement is pasted below
Australian-based ferro-alloys company Precious Metals Australia Ltd is pleased to advise that the Share Purchase Plan, which closed on 25 January 2007, has now been finalised following an exceptionally strong response from the Company's existing shareholders. The SPP successfully raised $2.7 million, 80% more than the underwritten amount of $1.5 million.
The SPP, which was fully underwritten by Australian stockbroking firm, Patersons Securities Limited, was designed to provide an opportunity for existing shareholders to participate in PMA's recently announced capital raising at the same price as the $48.5 million institutional share placement concluded in December. Shareholder approval for the second tranche of this placement was received last week.
PMA shareholders subscribed for a total of 1,384,515 shares under the SPP at $1.95 per share, raising approximately $2.7 million. As the offer was heavily oversubscribed, PMA's board has elected to accept all additional SPP applications above the underwritten amount, rather than scaling back individual applications.
PMA Managing Director, Mr Roderick Smith, said he was very pleased by the exceptionally strong support for the SPP from existing and new shareholders, with the attractive pricing of the issue - at the same level as the institutional share placement - attracting investors keen to participate by buying on-market ahead of the record date in order to qualify for the SPP.
"The combination of the institutional share placement and the SPP has significantly expanded our share register and greatly enhanced the liquidity of the stock," Mr Smith said. "The SPP has enabled existing shareholders to participate on the same terms as major institutional shareholders, and we have seen a number of shareholders top up their holdings through the SPP."
"PMA's shareholder base has increased from 864 to over 1,300 as a result of the SPP, which will greatly enhance the level of trading activity in the stock. We are very pleased to welcome these new investors on board and would also like to thank all existing shareholders who took part in the SPP," he added.
All shareholders who applied for shares under the SPP will receive their full entitlement on or about 31 January 2007. Following allotment of the shares issued pursuant to the SPP, PMA will have a total of 88.4 million shares on issue.
Together with the strongly supported $48.5 million institutional share placement, this concludes a $51.2 million capital raising and increases the Company's available cash resources to approximately $100 million, which will enable PMA to continue important site pre-development works at the $200 million Windimurra Vanadium Project while the remainder of the project finance package is being completed.
